Question : How Soon Can I Take Out a Home Equity Loan or Refinance After a Cash Purchase of a Foreclosure?
The house is only 10k. So if I pay 10k cash, how fast can I do a home equity loan for that 10k? I need to make repairs as it is a foreclosure in poor condition. Can I do a refinance loan and get more than I even paid for it if it appraises higher than 10k, which it will? Thanks for any help
- asked by don c
All Answers:
Answer #1
It depends on if you go through a bank or mortgagecompany. Many mortgage companies are willing toturn it in as soon as the sale is final. Banksgenerally are more resistent in this type ofthing.
- answered by Holi
Answer #2
If you already have a relationship with a lenderthen approach them and tell them what you want todo with the money. They will more than likelyrequire an appraisal and make a decision based onyour credit, income, debt and assets.
- answered by Othniel
Answer #3
It all depends on the difference in the value ofthe place and the amount owed on the loan - thatis what's considered your equity. Many banks willonly loan up to about 80% of the equity, but a fewgo higher. For example, lets say you owe $50,000,but the place is worth $60,000, then you have$10,000 in equity. Take 80% of that and you haveabout $8,000 you could loan against. I found agreat article about it onwww.payoffmyloansnow.com
- answered by Bobbyhaze
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measure and fulfill your financial needs
